Does corruption increase or decrease with public goods spending? I develop a model of public good provision by a rent … decrease corruption (in the form of bribes) if the marginal social value of the public goods from which the bribes are … effect on public spending, but unambiguously increases corruption (in the form of theft). Hence, a political resource curse …

relationship is influenced by the quality of local institutions, as proxied by corruption. We use representative data from a large … corruption environments. We find that corruption leads to more pessimistic beliefs about others' contributions in heterogeneous … groups, and this is an important mechanism explaining our results. In doing so, we highlight the indirect costs of corruption …

relationship is influenced by the quality of local institutions, as proxied by corruption. We use representative data from a large … corruption environments. We find that corruption leads to more pessimistic beliefs about others' contributions in heterogeneous … groups, and this is an important mechanism explaining our results. In doing so, we highlight the indirect costs of corruption …